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Does Guaranteed Approval for Personal Bad Credit Loans Really Exist?

The average consumer is bedeviled by these recessionary times and often is looking for a shortcut to solve their financial difficulties. The promise of a substantial loan with guaranteed approval, even for those with bad credit, may be a rather enticing quick fix.

Certainly on the internet and in web blogs, but also on billboards, on fliers, or in newspaper classifieds, one can always find advertisements from lenders offering guaranteed personal loan approval for all applicants, no matter how bad their credit. Before you even contact such a lender, there are some things that you should know.

The Credit Check

Even though these private lenders push the fact that they will grant loans no matter what your credit score, most will still run a credit check. They will probably refuse you if your credit score is critically low. Should that happen, the lender will probably suggest getting a cosigner.

A cosigner is usually a trusted friend or family member who is gainfully employed and has a better credit history than you do. (The cosigner should realize that by signing onto the loan they are liable for any unpaid amount should you default for whatever reason.) The lender will certainly run a credit check on your cosigner.

Guaranteed Loan Approval Is a Fantasy

Face it, if any lender guaranteed a loan to each and every applicant, that lender would not be in business very long. Also, do not be tempted to call an 800 number for easy access to a guaranteed loan. This is probably a ruse to get you to pick up the phone and call the lender so a person can gather all your vital statistics and then ask for an upfront fee.

Legitimate lenders do not approve loans over the phone; that is against the law. Some sort of contract or documentation, electronic or paper, must be shared between the lender and the borrower. Legitimate lenders will not ask for an application fee upfront. Fees should only accrue once a loan has been granted.

The Better Business Bureau Points Out Risky Business

Before approaching any lender, it would be wise to go to the Better Business Bureau (BBB) and check up on the lender. If you cannot find the lender in the BBB business directories, you should not be doing business with that company.

Once you do find a lender in the BBB directories, you will see a rating from A to F. Stick with the A-lenders. You will see a profile of the company. You will see customer satisfaction testimonials. You will find full contact information.

Fly Paper Marketing for Guaranteed Loan Approval

Offering guaranteed approval is a marketing gimmick to get you in the door, so to speak. Like flypaper, once you land, you are probably stuck. Once an unscrupulous lender has you on the phone or filling out applications, they have done half the job of getting you to purchase one of their loan products.

They are often successful because a poor credit applicant comes to feel like the lender is doing them a favor. Always remember that you are doing the lender a favor by offering your business. You are the boss. Do not deal with condescending lenders who make you feel bad about your poor credit history.

Guarantee Yourself Against Bad Lenders

Remember, guaranteed approval for a bad credit personal loan is never 100% true. Check with the BBB to learn crucial information about the lender. Do not agree to anything over the phone. Do not pay any upfront application fees. Do not deal with a lender who makes you feel like they are doing you a favor or makes you feel needy and uncomfortable about your credit history. Armed with this information, you will probably find a decent lender who can accommodate your financial goals.

How to Get Bad Credit Loans

You may have thought that securing a home equity loan with bad credit was going to be difficult? Actually, it is probably the easiest of bad credit loans to obtain.

The trick is knowing where to look and to be open minded about the options of funding that are available. The information provided here will inform you on how to seek out and obtain a homeowner loan for people who have bad credit. Irrespective of whether it is for home renovation or to finance a family holiday, bad credit home equity loans are available if you know where to look.

You will need collateral!

Home equity loans are exactly what they say they are in that they are loans secured on your home. Lenders love providing this type of loan as they provide a win-win situation for them; if you are a good customer and make your payments on time all the time the lenders make there profit and every one is happy; but, if you do not, they get to keep all the payments made up to that point and they also get to repossess your home that they then sell on again and start the cycle all over again!

The loan is covered by collateral that can be either the property itself or the equity of it. This equity has been built up over the years due to increased house prices and any extensive alterations you may have made to your property that will have increased its value.

You will need to know exactly how much collateral you have before applying for any secured loan. Knowing this info will help you secure a better deal with lower interest rates and terms.

Finding the right loan

Finding a bad credit homeowner loan is all about being open minded and considering every option. You should not limit your search to just looking at the big banks and lenders, consult mortgage companies, online lenders and finance offices too.

Every lender will have loans that they may possibly be able to offer you, and your options will increase the grater number you call on; using the internet is a great way to do this as you will save on all the legwork, plus you may well unearth a perfect deal for you that you otherwise would never have found.

The more effort and work you put into this search the better a deal you are more likely to find so it is well worth the effort.

Shopping around for the best deal

Your exhaustive search should have unearthed a healthy shortlist of likely lenders for your bad credit home equity loan. Request quotes from each of the various lenders and information about the various loans that they provide. This will assist you in deciding upon the right loan for your circumstances as well as eliminating those loans that are expensive. This is where a search performed on the internet can provide savings as online lenders often offer the best rates because of their lower operating costs, even for those with a bad credit history.

Choosing the ideal loan

Finding the ideal loan that ticks all the boxes isn’t always easy, in fact it can seem downright impossible however, there will be loans that come relatively close to your requirements and when you are confident that the loan balances as closely with your needs as possible you have found yourself the winner.

When deciding upon the specifics that you want your loan to match, consider not just the interest rates but the term of the loan, penalties, setting up fees, early settlement charge and the cost of payment protection insurance, on your loan.

Finally consider what you can afford to repay, and once you have done all this you will have the best bad credit homeowner loan that fits your specific needs.

Bad Credit Loans to Help Consumers

Once you obtain bad credit, you likely would not qualify for a advance with a traditional lender. In actuality, with today’s credit crunch, nearly all lenders have revised their procedures to undertake simply those people with near-perfect credit scores.

Fortunately, there are lenders who will loan money to individuals with bad credit, as well as poor credit. These bad credit loans, or else bad debt loans as they are additionally called, do not rely on a credit rating for qualification, and many times do not require securities. Nearly all lenders ask applicants simply to own an functional bank account and be employed, or else possess a further source of steady revenue.

Obtaining a bad credit loan should be a trouble-free and satisfying procedure, as long as you stick to a couple of straightforward steps.

Study your loan contract in detail. Each lender could possess a unique set of rules and regulations about the types of loans they offer. Reading the loan contract through carefully at least one time can help you understand the interest rate and payback plan, as well as All penalties or else other costs which could be assessed. Be certain to take note of All penalties that can be accrued once you are behind in paying. Several loans in addition could certainly extend your loan once you can’t pay it back on time as agreed. It must additionally be acknowledged in the contract, along with all costs the lender could charge for that service.

– Understand your own limitations. Be certain you could easily pay back All advance amounts you could get. Although lenders have complicated formulas to help establish how much debt you could deal with whilst preparing a payback plan, only you know what other probable expenses you could be facing in the future, and which could have an effect on your ability to pay back.

– Get your paperwork complete. Generally bad credit loan companies need only a bank account number and employment contact information, although several could in addition ask for proof of residence or else other identification in order to process your credit request speedily.

– Shop around. You might be anxious to sign the finance contract and receive your money, but take a little time to compare lenders to establish which lender is suitable for your needs. Lenders will vary widely in terms of interest rates, payback conditions, and customer service. Additionally be certain to check for reviews of any lender ahead of signing, to look for both pleased and unhappy individuals and establish whether or not your prospective lender has a satisfactory and trustworthy track record.